Detailed Project Report
Aluminium Castings (Foundry)
—
Prepared on: 29 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹11.07 L
- Term loan from bank
- ₹7.19 L
- Promoter’s contribution
- ₹1.11 L
- Subsidy
- ₹2.77 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.91 L
- Average DSCR
- -2.21
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Melt aluminium alloy ingots and pour them into sand or gravity-die moulds to make parts, fan rotors, flasks and patterns.
| Main product or service | Aluminium Castings (Foundry) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Ferrous and non-ferrous foundries (flasks, core plates, patterns)
- Ceiling-fan makers (rotors)
- Pump makers, railways, breweries
- Chemical, marine and electrical industries
- Direct job orders from manufacturers
- Engineering traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Oil-fired crucible melting furnace with crucibles and ladles | 1 | 0 | 0 |
| Sand moulds and permanent (gravity die) moulds | 1 | 0 | 0 |
| Automatic lathe for turning castings | 1 | 0 | 0 |
| Testing for mechanical and chemical properties | 1 | 0 | 0 |
| All plant and machinery (total; no item-wise costs printed) | 1 | 10,54,000 | 10,54,000 |
| Total | 10,54,000 |
Pre-filled from: PMEGP sample project report — Aluminium Castings Manufacturing Unit (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Aluminium and aluminium alloy ingots (LM-5, LM-6, LM-24) — 72 MT a year at an average ₹1,80,000/MT at full capacity
- Foundry sand, bentonite, die coats, degreaser and refractories — ₹1,30,000 a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 10.54 |
| Contingency | 0.53 |
| Total fixed capital | 11.07 |
| Working capital margin | 0.00 |
| Total project cost | 11.07 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.11 | 10.0 |
| Subsidy | 2.77 | 25.0 |
| Term loan from bank | 7.19 | 65.0 |
| Total | 11.07 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 |
| Operating profit (EBITDA) | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 |
| Depreciation | 1.66 | 1.41 | 1.20 | 1.02 | 0.87 | 0.74 | 0.63 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.78 | 0.67 | 0.55 | 0.43 | 0.31 | 0.19 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.60 | -5.24 | -4.91 | -4.61 | -4.33 | -4.08 | -3.85 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.60 | -5.24 | -4.91 | -4.61 | -4.33 | -4.08 | -3.85 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.60 | -5.24 | -4.91 | -4.61 | -4.33 | -4.08 | -3.85 |
| Depreciation | 1.66 | 1.41 | 1.20 | 1.02 | 0.87 | 0.74 | 0.63 |
| Cash accruals (PAT + depreciation) | -3.94 | -3.83 | -3.71 | -3.59 | -3.47 | -3.34 | -3.22 |
| Term loan repaid | 0.55 | 1.11 | 1.11 | 1.11 | 1.11 | 1.11 | 1.11 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.49 | -4.94 | -4.82 | -4.69 | -4.57 | -4.45 | -4.33 |
| Cash and bank | -4.49 | -9.43 | -14.24 | -18.94 | -23.51 | -27.96 | -32.29 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 |
| Reserves and surplus | -5.60 | -10.84 | -15.75 | -20.35 | -24.69 | -28.77 | -32.62 |
| Term loan outstanding | 6.64 | 5.53 | 4.43 | 3.32 | 2.21 | 1.11 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.92 | -1.43 | -7.45 | -13.16 | -18.60 | -23.79 | -28.74 |
| Net fixed assets | 9.41 | 8.00 | 6.80 | 5.78 | 4.91 | 4.17 | 3.55 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -4.49 | -9.43 | -14.24 | -18.94 | -23.51 | -27.96 | -32.29 |
| Total assets | 4.92 | -1.43 | -7.45 | -13.16 | -18.60 | -23.79 | -28.74 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.37 | -1.77 | -1.90 | -2.05 | -2.23 | -2.44 | -2.69 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.21 |
|---|---|
| Lowest DSCR | -2.69 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.66 | 1.41 | 1.20 | 1.02 | 0.87 | 0.74 | 0.63 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 7.19 | 0.78 | 0.55 | 6.64 |
| 2 | 6.64 | 0.67 | 1.11 | 5.53 |
| 3 | 5.53 | 0.55 | 1.11 | 4.43 |
| 4 | 4.43 | 0.43 | 1.11 | 3.32 |
| 5 | 3.32 | 0.31 | 1.11 | 2.21 |
| 6 | 2.21 | 0.19 | 1.11 | 1.11 |
| 7 | 1.11 | 0.07 | 1.11 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Pollution Control Board clearance (report lists it in the schedule)
- Factory licence
- Trade licence
- Fire NOC
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Aluminium Castings Manufacturing Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Aluminium_Castings_Project_%28_Samadhan_Projects_%29.pdf
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.